From: International Briquettes Holding, IBH Subsidiary of Siderúrgica Venezolana SIVENSA S.A.C.A. Contacts: Isabel Camejo / Maury Bedoni - Investor Relations Telephones: (02) 707.61.45 / 707. 64.49 / Telefax: (02) 707. 64.26 E-mail: ir_dept@sivensa.com FOR IMMEDIATE DISTRIBUTION:

IBH REPORTS FIRST QUARTER 1998 RESULTS

CARACAS, JANUARY 30, 1998... International Briquettes Holding (IBH), producer of Hot Briquetted Iron, reported sales of $20.5 million, 3.4% below last year's first quarter sales of $21.2 million.

Operating income was $3.3 million, representing a 16% margin, as compared to the 22% margin recorded the previous year. This reduction was due to a scheduled maintenance shutdown at Venprecar and to an increase in gas prices. Net income was $2.8 million, as compared to $4.4 million for the October-December 1997 quarter. Due to the fact that IBH did not exist in 1997, the first quarter 1998 financial results of IBH included in this report are compared to the corresponding 1997 pro-forma statements. All the comparisons included in this report refer to such pro-formas. It is important to note that the IBH financial statements consolidate the Venprecar subsidiary, while the joint venture companies with BHP are reported using the equity method. To facilitate operating analysis, we have presented Venprecar and Operaciones RDI reports separately, as shown below.

VENPRECAR SALES aaa 1st Quarter 1997 1st Quarter 1998 Change % Local (MT) 81,234 91,822 13% Exports (MT) 68,742 61,066 -11.1% Average Price ($/TM) 122,82 129,92 5.78%

VENTAS DE OPERACIONES RDI aaa 1st Quarter 1997 1st Quarter 1998 Change % Local (TM) 10,553 2,880 -72.70% Exports (MT) 44,074 57,473 30.40% Average Price ($/TM) 131,99 131,27 -0.5%

The weighed average prices of HBI for Venprecar and Operaciones RDI increased 4% between the current quarter and the comparable quarter last year, rising from $125.26/MT to $130.30/ MT. This improvement is due to the increase in high quality scrap prices in the United States during recent months. As the operating analysis shows, IBH sales decreased 4%, even though Venprecar's briquette price increased and volume sales were similar to the comparable quarter in the previous year. This difference is due to sales of subproducts such as HBI chips during the October-December quarter in the previous fiscal year which did not occur this year. Additionally, the equity participation line shows a $1.2 million loss. This is due to the fact that our affiliate, Operaciones RDI, had a 35-day plant shutdown during which normal maintenance and other repairs were made. In keeping with a change in the accounting procedure for plant shutdowns, normal maintenance was fully charged to the quarter's results. Similarly, and in accordance with U.S. accounting standards, the current fiscal year's first quarter administrative expense of $0.3 million for the Orinoco Iron project was charged directly to the results, negatively affecting the equity participation. The civil works of the Orinoco Iron Project for the construction of a briquette plant were started during the month of December with the participation of Venezuelan President Rafael Caldera. During the quarter, the engineering, procurement, and civil works have advanced as programmed. The project currently employs 300 people. International Briquette Holding (IBH) is a company dedicated to the production of iron ore briquettes to be traded mainly in foreign markets. The company holds 98.8% of Venprecar and 50.0% of Operaciones RDI. Its operation's strategic location takes advantage of the cost benefit of the most important inputs like iron ore and natural gas. It is currently building a 2.2 million MT plant in the joint venture with the Australian company BHP. This plant will begin operations in the last quarter of 1999 using the FINMET technology.